Aleris deal concerns scrap suppliers

Apr 02, 2014 | 06:03 PM | Nathan Laliberte

Tags  Aleris International, Nichols Aluminum, credit insurance, aluminum scrap, scrap dealers, Nathan Laliberte

NEW YORK — A series of aluminum scrap suppliers have voiced concerns about the potential for restricted access to credit insurance for loads shipped to Aleris International Inc.’s facilities following the company’s $110-million acquisition of Nichols Aluminum LLC.

Dealers reached by AMM April 2 said they had previously secured separate credit insurance for Nichols and Aleris. But since the close of the acquisition, some dealers believe they might have to obtain insurance packages based only on Aleris’ credit strength, which could result in a drastic reduction on "insurable volumes" of shipped material, they said.....





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